A recent study by Dodge Construction Network and GCPay reveals that automation and digital transformation in managing subcontractors can significantly enhance productivity, profitability, and cost performance for general contractors.
The study shows that currently, 34% of general contractors have automated less than half of their subcontractor management processes. Many still rely on outdated solutions, which creates data silos and hampers the integration of information across different processes. However, those who implement technology for subcontractor management report several benefits, with 91% seeing improved productivity, 81% noting improved cost performance, and 79% experiencing improved profitability.
The study emphasizes that contractors using commercial solutions for over half of the processes reported greater benefits compared to those who didn’t. Those fully engaged in using purpose-built commercial solutions experience a high to a very high level of improved productivity and profitability.
Steve Jones, Senior Director of Industry Insights Research at Dodge Construction Network, stated that automated processes provide efficiency, analysis, and decision support, benefiting those who commit to integrating technology into the majority of their processes.
While many contractors are planning to increase automation, particularly in areas such as scheduling, change orders, and payment applications, the study highlighted a concern: only 9% of companies plan to automate critical processes like OSHA compliance and reporting and tier vendor management. This indicates a need for a better understanding of the value of automation among contractors.
The study confirms that amid project delays, supply chain constraints, and labor shortages, there is a growing trend toward adopting technology for automating financial and managerial processes.
For more information, download the Optimizing Subcontractor Management with Technology SmartMarket Brief study.
View the original article and our Inspiration here
Leave a Reply